Agreement for donating a share of a car by inheritance
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Car share donation agreement
If you own part of a car and you decide to transfer it to another person free of charge, how to formalize this transaction? Next, we will answer questions regarding the execution of a car share donation agreement (a sample is presented later in the article).
Donation of car share: law
According to Art. 246 of the Civil Code of the Russian Federation, a participant in shared ownership has the right to donate his share. Under a contract for donating a share of a car, one party (the donor) transfers ownership of the thing to the other party (the donee) free of charge (Article 572 of the Civil Code of the Russian Federation).
Agreement for donating a share of a car by inheritance
The car may be in shared ownership as a result of the inheritance of several heirs. Then a decision is often made to donate a share of the car to the second heir. Below we will present a sample agreement for donating a share of a car by inheritance.
Agreement on donating a car share between relatives
Typically, a car share donation agreement is concluded between relatives (close relatives and family members), because in this case, the one who receives a share of the car as a gift is exempt from personal income tax.
Is it necessary to draw up a gift agreement in writing?
In accordance with Art. 574 of the Civil Code of the Russian Federation is not prohibited from concluding an agreement to donate a part of a car orally, but to perform further actions with the vehicle you will need a written form of this document.
Does the car share donation agreement need to be notarized?
The law does not provide for the obligation to notarize the donation of a car share, but to avoid negative legal consequences, it is recommended to contact a notary.
In the case when it is not the owner of the share of the car himself (for example, 1/2 share), but his representative who participates in the transaction, then a notarized power of attorney from the owner is required.
Registering a car with the traffic police after donating a part of the car
To re-register a car under a donation agreement, along with other documents necessary for registering the vehicle with the traffic police, a donation agreement for a share of the car is provided. The list of required documents is contained in Order of the Ministry of Internal Affairs of Russia dated August 7, 2013 No. 605 “On approval of the administrative regulations of the Ministry of Internal Affairs of the Russian Federation for the provision of state services for the registration of motor vehicles and trailers for them.”
If a car is inherited by relatives in shares, one owner can donate his share to another
Tax on gift of car part
Anyone who receives a share of a car as a gift is required to pay income tax unless they are a family member or close relative of the donor. Read more about this here.
Donation agreement for car share: sample
Below is a form (sample) of a donation agreement for a part of a car. It is similar to an agreement for donating a car, only when filling out the form it is indicated what share of the car is being donated (for example, donating ½ share of the car).
DONATIONS OF CAR SHARE
(place of conclusion of the contract)
______________ (full name, month, year of birth), passport series ______ number ______ issued___________, hereinafter referred to as the “Donor,” on the one hand and
______________ (full name, month, year of birth), passport series ______ number ______ issued by___________, hereinafter referred to as the “Done”, on the other hand, and together referred to as the “Parties”, have entered into this agreement as follows:
- Under this agreement, the Donor transfers ownership to the Donee free of charge, and the Donee accepts as a gift a share in the amount of _____ of a vehicle with the following characteristics:
— name (type of vehicle): ____________;
— make, model of vehicle: _____________;
— vehicle category: ______________;
- register sign: ____________;
— identification number (VIN): ____________;
- year of issue: ______________;
— model, engine number: _________;
— engine power, hp (kW): ____________;
— chassis (frame) No.: ___________;
— body (cabin, trailer) No.: _________;
- The donor has ______ interest in the ownership of the car based on ________________.
- The donor guarantees that at the time of signing this agreement, the specified share has not been sold to anyone else, has not been gifted, has not been pledged, is not encumbered with the rights of third parties, is not in dispute or under arrest.
- The donor guarantees the transfer of the car within ________ (period, for example, on the day of signing the contract or no later than 10 days from the date of signing the contract).
- The donor has the right to cancel the donation on the grounds provided for by the current legislation of the Russian Federation.
- The Agreement comes into force from the moment it is signed and is valid until the Parties fully fulfill their obligations under the Agreement.
- This agreement is drawn up in ____ copies having equal legal force.
- The costs of drawing up this agreement are paid by _______.
Details and signatures
When there is a need to transfer part of a vehicle free of charge, a car share donation agreement is drawn up. A sample agreement, as well as answers to questions related to the preparation of this document, are given in this article.
Agreement for donating a share of a car by inheritance
A car is a type of property that cannot be given to another person without appropriate registration of ownership. Owners use different methods to transfer ownership of a car, for example, purchase and sale is common. But this is not beneficial in every situation, since you will need to pay a state fee. Thus, an agreement to donate one share of a car to a relative by inheritance is suitable for transferring the rights to this property to one of the close relatives, however, there are a number of nuances in the design.
Donation of a vehicle
Donation is a written expression of will, according to which one citizen transfers the right to dispose, own and use his property to another free of charge. You can donate a vehicle under the same conditions.
To re-register material value as the property of the donee, you will need:
- expression of the will of the donor;
- prepare and fill out the donation agreement form in the manner prescribed by the legislator.
According to the laws of the Russian Federation, things transferred according to this expression of will are subject to a state duty, the rate of which is 13% of the estimated price of the gift. Anyone who receives a car as a gift pays income tax. The exception is transactions between members of the same family.
To receive benefits, you need to present to the tax authorities certificates confirming your relationship. One family belongs to a limited circle of people: husband and wife, grandmothers, sisters, grandfathers, grandchildren, brothers, adopted children and their adoptive parents.
For example, a grandmother executed donation documents in the name of her grandson, who in these circumstances is not required to pay a fee, since he is closely related.
However, brothers/sisters of one of the parents are recognized as distant relatives. The only exceptions are officially adopted children, even if they are not related by blood. Distant relatives include former spouses, father-in-law and daughter-in-law, mother-in-law and son-in-law, as well as those in an unofficial marriage.
If the citizen who received the car is not a family member, he is required to pay a fee of 13% of the value of the gift. It is worth considering that the rate is 13% if the recipient is a resident of Russia, if not, then 30%.
When receiving a car from a distant relative after paying personal income tax, you can contact the Federal Tax Service with a tax return to make a deduction of 13%.
However, payment of state duty can be avoided by carrying out the donation process in several stages - transferring property through family members. For example, a father-in-law gives a car to his son, and he, in turn, gives his wife - in both cases, personal income tax is not paid. When applying this scheme, the vehicle is re-registered twice.
Gift deed for a share of a car by inheritance
In a situation where the car was inherited by the co-owners in equal shares, any of them has the right to donate it to a third party. The heir who received the car transfers his share to another heir. Re-registration of your part of the car may be necessary, because the vehicle is registered in the traffic police for 1 citizen.
When making an act of donation, it will be necessary to visit the traffic police to indicate the transfer of transport from one hand to another. The presence of the former owner at the road inspection is not necessary.
Car donation agreement
The legislator has not established a universal form of deed of donation for a car - you can choose either written or oral. But to avoid unnecessary problems and questions, it is best to make an application in writing.
To transfer the vehicle, documentation is drawn up indicating the following relevant information:
- information about the subjects of the transaction (full name, passport details, registration address);
- description of the car - make, color, year of manufacture, power, VIN number of the vehicle, information about all the things that are included in the kit (for example, passenger vehicle KIA RIO sedan, 2010, color red, VIN number 5678901, manual transmission , the kit includes a Pioneer brand radio, a Xiaomi video recorder, and a parking radar");
- vehicle acceptance address;
- cost of the car (optional);
- signatures of participants.
The required fields noted above are what the deed of donation must contain; then it can be notarized.
To draw up an agreement, you should seek help from a notary or draw up the document in person. In the second case, it is necessary to carefully write down all the main points, without missing anything. It is especially important to correctly, in detail and unambiguously describe the object of the transaction.
Sample car donation agreement
Car donation agreement rules and subtleties of drafting
The execution of any transaction requires compliance with certain conditions. To make a donation, you must present:
- OSAGO policy;
- passport of the car and the subjects of the transaction;
- documents certifying family ties (if property is transferred to a family member);
- vehicle registration certificate;
- act of acceptance and transfer;
- confirmation of the absence of arrests and encumbrances.
Giving has its own nuances and subtleties, which include:
- Car cost . It is not necessary to indicate the cost of the car, since this is not required by the law. However, a traffic police officer may pay attention to this point, which may lead to a loss of time. Therefore, to save time and nerves, it is better to indicate the cost.
- Notarization . The question may arise as to whether the document needs to be certified; when transferring between individuals, this is not necessary. However, if you wish, you can submit documents to a notary. Even if the agreement is between relatives, this should be done - it will be more difficult to challenge the procedure in court proceedings if disagreements arise.
- Re-registration with the traffic police . After drawing up the donation agreement, for final registration, you must visit the traffic police department to register the car. A receipt for payment of the state duty is presented to the inspectorate. At the traffic inspectorate, the new owner will be issued a vehicle passport indicating the new owner.
- Consent of the co-owner . If the car is shared ownership, then the consent of the remaining owners will be required.
- Tax accounting . If the donation is made between strangers, you will have to pay a state fee of 13%. If they are members of the same family, then no income tax is paid. For example, sisters draw up a document of donation - under these conditions no fee is charged.
A document is drawn up in free form in the amount of 3 pieces. – for each of the parties to the transaction and for the traffic police.
Re-registration of a car by deed of gift
Re-registration of a car under a deed of gift requires compliance with the following conditions:
- Capacity . The person making the donation must have legal capacity. According to this condition, persons who are minors and other citizens recognized as incompetent will not be able to become donors.
- Gratuitous . Registration can only be carried out free of charge, i.e. you cannot demand any value in return - the donor must transfer the vehicle without receiving anything in return. If, in fact, money was paid for a car registered under a donation agreement, then the transaction is considered invalid and fictitious.
You cannot transfer anything for free if the recipient:
- employee of a medical institution;
- works in an institution providing social care;
- employee of an orphanage, orphanage, orphanage;
- civil servant;
- Bank employee;
- An individual entrepreneur undergoing bankruptcy proceedings.
It is prohibited for those listed to re-register anything, including a car, due to their official position and responsibilities.
It is also prohibited for commercial firms to transfer anything to each other by deed of gift. But they are not prohibited from accepting something from an individual and transferring something to another individual.
How to inherit a car
If the car is jointly owned by spouses, then it can only be donated with the approval of both parties. So, spouses can transfer property to their child, but it is worth considering that:
- Any legal representative has the right to accept a gift for a minor;
- the recipient does not pay taxes because he receives the car from close relatives;
- the gift agreement should not contain restrictions on disposal, use and ownership.
The recipient has the right to refuse the gift, but this must be done in writing. If the fact of the donation was certified by a notary office, then you will need to write a refusal from the notary. The donor can cancel the fact of donation if the donee has died, and the fact of donation was planned and has not yet taken place.
Donating a car
You can give an item to either a relative or a stranger. The nuances and points of the agreement both there and here are absolutely identical, the only difference is that the new owner, who is a distant relative, will have to pay the established fee.
But ownership can be transferred in another way, for example through purchase and sale. However, it is worth remembering that in cases of a donation between members of the same family, this type of re-registration of the right to the value in question is more profitable than purchase and sale.
The latter consists of transferring any value into the possession of a new owner for a certain fee. The sale, like other similar transactions, is subject to taxation. When buying and selling, the tax will also be 13% for a resident, 30% for a non-resident. It is worth remembering that when a car or other property is sold, the seller must pay the state duty.
When a car is transferred between persons with family ties, when deciding whether it is more profitable to sell the car or give it as a gift, you should be guided by the closeness of the relationship. Since it is more profitable for such a relative to give a car as a gift, this will avoid paying duties. It should be borne in mind that in any case the gift will remain with the recipient of the property, even if in the future he faces divorce proceedings with division of property.
The process of donating a car includes presenting the necessary documentation in a certain order, this is:
- deregistration of the vehicle with the traffic inspectorate;
- signing the donation document;
- signing the acceptance certificate;
- the person who receives the car must register it with the state traffic inspectorate within 5 days after signing all the papers.
The agreement takes legal force immediately (at the time of signing) or within the period specified in the document.
Agreement for donating a share of a car by inheritance
In this case, the fact of donation is in writing and has mandatory sections, just like a standard document of this kind. The main sections include the following:
- current personal information about subjects (full name, address, passport details);
- Date of preparation;
- car model;
- size of the transferred part;
- information that what is being transferred is not burdened with loans and various restrictions;
- existing defects are better identified;
- additional information about the things that come with the car.
If the act is drawn up independently, the certified consent of the co-owners is attached to it. Information is also entered that the donee is a capable citizen.
So, it is possible to give away a car free of charge to any person - the circle of people is not limited. You can arrange such a gift in person or through the services of a notary office. It is worth considering that the subtleties and nuances that accompany the process of donating a car are related to who the parties are to each other, as well as the fullness of the rights to the car in question.
It is worth choosing the appropriate method for reasons of financial savings and personal benefit. It should be borne in mind that there are rules and special government structures that regulate such matters and record the transition from one person to another.
Car donation agreement (deed of gift)
Good afternoon, dear reader.
Currently, there are several ways to transfer ownership of a car. Most often, car owners sell a vehicle using a car purchase and sale agreement.
However, this option is not always the most profitable, because... When selling a car, its owner is forced to pay the appropriate tax.
In practice, there are situations in which you can completely avoid paying tax if you use a gift agreement or deed of gift. We are talking about the transaction of donating a vehicle , which will be discussed within the article.
Paying taxes when donating a car in 2019
To begin with, I would like to note that only a deed of gift for a car concluded between close relatives . This follows from Part 2 of the Tax Code of the Russian Federation (Article 217, paragraph 18):
Income received as a gift is exempt from taxation if the donor and recipient are family members and (or) close relatives in accordance with the Family Code of the Russian Federation (spouses, parents and children, including adoptive parents and adopted children, grandparents and grandchildren, full and half (having a common father or mother) brothers and sisters);
Thus, donating a car is not taxable if the parties to the transaction are:
- husband wife;
- father (mother) - son (daughter);
- adoptive parent - adopted person;
- grandfather (grandmother) - granddaughter (grandson);
- brother (sister) - sister (brother) (having at least one common parent).
Please note that in all other cases, when donating a car, the recipient is required to pay a tax of 13 percent of the value of the car.
For example, when donating a car worth 500,000 rubles, the tax amount will be 65,000 rubles.
Note. When receiving a car as a gift, tax deductions are not provided (Part 2 of Article 220 of the Tax Code of the Russian Federation), i.e. Tax will have to be paid on the entire cost of the donated car.
Gifting a car between distant relatives
In practice, there are situations when you need to transfer a car between people who are actually relatives, but are not included in the list of close relatives.
For example, a few common situations:
- mother-in-law (father-in-law) - daughter-in-law;
- mother-in-law (father-in-law) - son-in-law;
- ex-wife - ex-husband;
- common-law wife - common-law husband.
There are several options for completing a transaction with minimal costs:
- Use of a purchase and sale agreement.
- Use of several gift agreements through intermediate close relatives.
For example, let’s say you need to give a car from your mother-in-law to your son-in-law. In this case, the mother-in-law first gives the car to her daughter (a close relative). After this, the daughter gives the car to her husband (also a close relative).
In this case you will have to:
- Draw up 2 gift agreements.
- Contact the traffic police once to register your car.
Tax return when donating a car
The recipient must file a tax return only if he received the car as a gift from someone other than a close relative . This follows from Article 228 of the Tax Code of the Russian Federation:
1. Tax calculation and payment in accordance with this article is carried out by the following categories of taxpayers:
.
7) individuals receiving from individuals who are not individual entrepreneurs income in cash and in kind by way of gift, with the exception of cases provided for in paragraph 18.1 of Article 217 of this Code, when such income is not subject to taxation ;
So, when giving a car as a gift to a close relative, you do not need to file .
Obviously, the operation of donating a car makes sense only when it is carried out between close relatives. In all other cases, I recommend using the purchase and sale scheme.
Let me remind you that when buying or selling, the tax will be paid by the seller, but its amount may be significantly less than when making a gift, because You can take advantage of the tax deduction. Well, if you own a car for more than 3 years, no tax is paid at all.
Form of car donation agreement between relatives
Let's proceed directly to the execution of the car donation agreement . Deed of gift form in the form of images (click to enlarge):
You can also download the car donation agreement form as a pdf file here.
Note. The deed of gift does not need to include information that the parties to the transaction are close relatives. Traffic police officers are not interested in this issue.
Sample car donation agreement
In principle, it is quite simple to issue a deed of gift for a car, even without special knowledge. However, I recommend using a sample car donation agreement so as not to miss or confuse anything:
Sample agreement for donating a car to a relative in pdf format:
How to issue a deed of gift for a car in 2020?
Let's consider point by point how to issue a deed of gift for a car:
1. At the beginning of the gift agreement, you must indicate the city of the transaction, its date, as well as the full name of the donor and the full name of the donee (detailed details of the parties will be filled in a little later).
2. In paragraph 1.1. You must provide as complete information as possible about the vehicle.
3. In paragraph 2.1. The deed of gift should include the address of the place where the vehicle is transferred to the donee.
4. Clause 2.2. required to be filled with additional things and items that are donated along with the car.
For example, these could be documents for a car and a set of winter tires.
5. In Section 4 of the agreement, it is necessary to enter complete information about the parties to the transaction (their passport details).
6. After the car donation agreement has been drawn up in triplicate, each participant in the transaction must sign in the appropriate field.
7. After handing over the keys to the car, the recipient must also sign in the “received the car” column.
Is it necessary to indicate the cost of the car in the contract?
There is no need to indicate the cost of the car in the contract; this information is optional .
However, in practice the following cases sometimes occur. The traffic police officer, who did not find anything to complain about, tells the driver that the contract is invalid, because it does not indicate the cost of the car. In this case, there are 2 options:
- Immediately file a complaint with a higher-ranking official at the traffic police.
- Just add the cost of the car to clause 1.1 of the contract.
The case is extremely rare, but you also need to be prepared for it.
Do I need to have the gift deed certified by a notary?
Notarization of the deed of gift is not required and it has no practical meaning.
In principle, drawing up a gift agreement yourself should not cause any difficulties. However, the transfer of ownership of the car is not complete.
Enter the details of the new owner in the vehicle passport (PTS), and also put the signature of the previous owner in the appropriate column. And only after that you can go to register the car at the traffic police. In this case, the presence of the donor in the unit is not required.
Donation of a vehicle
In civil law, a vehicle is classified as movable property. Any person who owns a car has the right to dispose of it at his own discretion. He has the right to sell, lease or gift the vehicle to another person. The person who accepts the property as a gift can be a close relative, friend or acquaintance. The main requirement of the transaction is the presence of will in it and gratuitousness (not requiring something in return).
If the car is donated to a person who is not closely related to the donor, then the income tax on the vehicle will be 13% of the total value of the gift item.
Registration of car donation
From the point of view of the law, it is better to draw up a donation agreement for a vehicle in simple written form, although this requirement is not specifically established. This is necessary to prevent various disputes, questions and troubles in the future regarding this property.
In order to issue a deed of gift for a car, you need to draw up a document in writing. It must contain the following information :
- about the date and place of drawing up the document;
- about the donor (his last name, first name, patronymic, as well as passport details and registration address);
- about the donee (his last name, first name, patronymic, as well as passport details and registration address);
- as much detail as possible about the vehicle (make, model, color, year of manufacture, engine size, VIN code);
- on the rights and obligations of the donor and the donee;
- signatures of the parties.
At the request of either party, the transaction can be formalized by a notary. After drawing up a donation agreement for a vehicle, you need to contact the registration authority of the State Traffic Safety Inspectorate in order for this car to become the property of the recipient. At this institution, he will be given documents, namely a vehicle passport and a registration certificate, which will indicate the new owner.
Donating a car to a close relative
Every citizen has the right to dispose of his property at his discretion. He has the right to sell it, rent it out, and also donate it. A person owns a vehicle that he can gift to his close relatives (spouse, children, grandparents, brothers, sisters).
It is better to draw up the document in writing , indicating all the necessary information about the parties and the subject of the agreement. If the vehicle is joint property, the consent of the second spouse to this transaction will be required, otherwise the transaction can be challenged. Gift tax will not be paid on the basis of clause 18.1 of Art. 217 of the Tax Code of the Russian Federation.
Donating a car to an individual
A gift deed for a car to an individual does not differ from a regular gift agreement. In this case, its peculiarity will only be in who the donor is. If they are not relatives, you will have to contact a vehicle valuation organization and pay a tax of 13% of the value of the gift.
Those. The payment of income tax on the vehicle will depend solely on the parties to the transaction. Vehicles received as a gift are subject to income tax, but only if the parties to the agreement are not close relatives (clause 18.1 of Article 217 of the Tax Code of the Russian Federation).
Donating a car share
Art. 246 of the Civil Code of the Russian Federation regulates the rules for disposing of property that is in shared ownership. In order to formalize the donation of a car share, the parties to the transaction must be present - the donor and the recipient, as well as the necessary documents. A donation is a gratuitous transfer of property, i.e. a person who gives a share of property should not demand from the other any money or other material benefits in return (Part 1 of Article 572 of the Civil Code of the Russian Federation).
As for the agreement itself, it is better to draw it up in writing , indicating the necessary details of the parties and the subject of the transaction (clause 3 of Article 574 of the Civil Code of the Russian Federation). You can attach copies of title documents , which confirm the existence of ownership rights, as well as technical characteristics of the subject of the transaction. The contract should indicate additional equipment, which, together with the main item, is included in the kit.
The vehicle, TOYOTA COROLLA, 2008, color: dark blue, VIN code: 1234567, as well as a Pioneer car radio (included) , a Shome radar detector , a Sony video recorder.
The agreement must contain information about its parties - last name, first name, patronymic of each of them, passport details, their registration addresses, as well as about the subject of the transaction itself, i.e. car shares.
The donation agreement for a share of a vehicle must contain information :
- about the place of drawing up the contract;
- about the date of compilation, in words;
- about the parties to the agreement (full name, passport details, addresses of their place of residence);
- about the make and model of the vehicle;
- about the things that come with cars;
- about the size of the share;
- about property disputes regarding the car, or restrictions on it.
Giving a car to a minor
An agreement for donating a vehicle to a child, namely a minor, has a number of features, but in its form, a deed of gift for a car to a child is no different from other gift agreements. The contents of the document also indicate the details of the parties and the subject of the contract itself - the vehicle.
In accordance with Art. 28 of the Civil Code of the Russian Federation, the legal representatives of a minor are his parents, adoptive parents or guardians .
Clause 3 art. 37 of the Civil Code of the Russian Federation tells us that legal representatives do not have the right to enter into transactions with a minor, but with the exception of transferring property to the ward as a gift or for free use.
If the car is the common joint property the consent of the second spouse to the transaction is required , but if it is owned specifically by one parent, then such consent is not required.
There are situations when a child has only one parent - mother or father. In this case, his only parent and child are parties, but the donor himself does not have the right to sign the document on behalf of the minor, because one person cannot act on behalf of both parties to the contract at once. In such a situation, you should contact the guardianship and trusteeship authority at your place of residence, where they appoint an employee authorized to take such actions and who signs the deed of gift on behalf of the minor child.
After signing the agreement, the registration procedure is the same as for a regular deed of gift. The agreement itself is not registered anywhere; the only thing that is required is to re-register the donated car in the name of the child. This can be done at the registration authorities of the traffic police . After which, the car becomes the property of the minor. A child will be able to perform any actions with it, namely: sell or rent it out, only upon reaching the age of majority, i.e. 18 years.
Giving a car to my wife
In order to give a vehicle to your wife, it is worth drawing up a gift agreement in writing, so that unpleasant situations do not arise when re-registering the car at the registration authorities of the traffic police.
The vehicle donation agreement should include the following information :
- about the date of drawing up the deed of gift;
- about the place of drawing up the deed of gift;
- about the donor - husband (full name, passport details, registration address);
- about the donee - wife (full name, passport details, registration address);
- about the subject of the donation (car make, model, VIN code);
- about the cost of the vehicle (this requirement is not mandatory);
- about the legal capacity and understanding of the persons entering into the transaction;
- signatures of the parties.
Next, you should contact the registration authority of the traffic police at your place of residence with the vehicle donation agreement, where the vehicles are re-registered to other persons. The donor submits an application in which he asks to re-register the vehicle that belongs to him with the right of ownership to his wife, the donee. In this case, the document-basis for such an action will be the gift agreement itself.
You should pay attention to the fact that if a division of the hundred-year-old property occurs, the husband will not have the right to claim the donated car, because it belongs exclusively to his wife, although it previously belonged to him.
In this case, there is no income tax , for the reason that the husband and wife belong to the category of close relatives, and they are usually exempt from paying personal income tax.
Which is better: selling or donating a car?
In order to figure out whether it is more profitable to sell a car or donate it, you should indicate the advantages of each action separately.
The purchase and sale of a vehicle is an agreement under which one party (the seller) is obliged to transfer ownership of the vehicle to the other party (the buyer), and the buyer undertakes to accept the goods and pay a specified amount of money.
- this transaction involves the transfer of a car to another person for a specific fee;
- the procedure must be accompanied by a written contract;
- If the buyer of the car is married, then the purchased vehicle becomes their joint property acquired during marriage.
Features of the gift agreement:
- the property that a person acquired as a result of his donation is not the joint property of the spouses;
- Personal income tax is collected only from the donee, who is not a relative of the donor;
- If there are controversial situations, the court has every right and every reason to suspect the donee of dishonesty. If this happens, the recipient may lose the property received and the money spent.
It should be concluded that such an action as a gratuitous donation of a vehicle makes sense only when such a transaction is made between close relatives . In all other cases, it is recommended to use the purchase and sale scheme. (It should be remembered that upon purchase and sale the tax will be paid by the seller, but its amount may be significantly less. And if you own a car for more than 3 years, it is not paid at all.)
Conclusion
It is better to formalize a gift in the form of a car in writing; you can contact a notary office for this. The deed of gift for a car should include the necessary information: details of the parties to the agreement and describe the subject of the donation in as much detail as possible. If there is any additional equipment or items in addition to the item, it is worth describing each of them in detail.
When gifting a car to a close relative (spouse, children, grandparents, brothers or sisters), tax on the gifted property is not paid. If the parties to the agreement are not closely related, personal income tax will be 13% of the total value of the gift.
You can give a car to a minor, but the child’s legal representative will sign the gift deed. This can be either a second parent, or a guardian or trustee.
Sample donation agreement for car share by inheritance
For individuals, passport details and addresses are additionally indicated.
- Distinctive features of the vehicle, including make, unit numbers and other information.
- Details of documents that confirm the donor's right to ownership.
- The date of execution of the transaction or the validity period after which the transaction will be valid.
How is the deal carried out?
First, it is recommended to download the sample and familiarize yourself with its contents. Next, you need to draw up a car donation agreement between close relatives by filling out the form following the example for this year.
A written document must be submitted to the traffic police.
- state duty for services;
- payment for car valuation (carried out only by accredited appraisers);
- associated costs.
Fact! The “price” of a notary will cost approximately five percent of the assessed value of the vehicle.
Payment of taxes when donating a car from 2018
A tax payment on a valuable gift (car) is not imposed if such a gift is presented by a person belonging to a close family environment or persons equivalent to them (spouses, brothers and sisters with at least one common parent, adopted persons).
All others pay a tax of 13% of the cost of the car.
How will the transaction be reflected in the 3rd personal income tax return?
Receiving such a valuable gift as a car is considered an individual’s income, so the fact of the transfer is reflected in the tax return.
Sample donation agreement for car share by inheritance
As I understand it, now you will need to pay a fine and change the docks to a new registration? I'm included in the insurance. I would like to re-register the car in my name while my father is here again. As I understand it, you first need to change the STS and PTS to the father’s new registration, and then write a deed of gift? The mother is also in Crimea now, is her consent needed?
26 June 2017 23:22
1.
Try to conclude a gift agreement and, based on it, register the car in your name. It is quite possible that in this case it will be possible to avoid the intermediate receipt of PTS and STS by your father.
2. If your family has normal relations and the mother subsequently makes no complaints, then there is no need to obtain written consent.
Good luck on the roads!
29 June 2017 21:23
Properly executed documents allow you to avoid potential problems later. They did not attach a sample agreement for donating a share of a car (machine) to a relative, since it is similar to the one posted above, with the exception of the mention of the share.
This video will tell you how to challenge a car donation agreement after the death of the donor:
Donation agreement for a share of a car: sample download agreement for donation of 1/2 share
Article 246 of the Civil Code of the Russian Federation describes the rules for the disposal of property owned in shares.
Agreement for donating a share of a car by inheritance, sample 2017
A standard car share donation agreement can be downloaded on our website.
You can switch to the following options for a gift agreement - sample fillings are provided by the designer and are already filled out in accordance with the type of the selected agreement:
For all types of gift agreements that can be prepared using the constructor, see the section Donation agreements.
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Car donation agreement: rules and subtleties of drafting
Most of us give and/or receive gifts more than once in our lives.
Donation agreement for a share of a car by inheritance sample download
For example, these could be documents for a car and a set of winter tires.
5. In Section 4 of the agreement, it is necessary to enter complete information about the parties to the transaction (their passport details).
6. After the car donation agreement has been drawn up in triplicate, each participant in the transaction must sign in the appropriate field.
7.
After handing over the keys to the car, the recipient must also sign in the “vehicle received” column.
Is it necessary to indicate the cost of the car in the contract?
There is no need to indicate the cost of the car in the contract; this information is not mandatory.
However, in practice such situations sometimes occur. The traffic police officer, who did not find anything to complain about, tells the driver that the contract is invalid, because it does not indicate the cost of the car.
Donation agreement for car share by inheritance form
There are exceptions that relate specifically to the close relationship of the donor and the recipient.
- spouses;
- parents with children (natural or adopted);
- grandparents and grandchildren;
- brothers and sisters, even if there is only one common parent.
This video will tell you about the mandatory clauses of a car donation agreement:
Important nuances
Unlike a transaction in which a car is sold/bought, it does not matter how long the car was owned by the previous owner.
Donation agreement for 1/2 share of a car by inheritance sample
Paragraph 18 of Article 217 of the Tax Code states that income received as a gift is exempt from taxation when the donee and the donor are members of the same family and/or close relatives.
The collection of family members and close relatives most closely corresponds to the everyday concept. Please note: if the donee cannot be classified as a close relative or family member, upon completion of the transaction he will have to pay 13% of the value of the donated property in the form of personal income tax.
If the agreement is drawn up by a notary, then another copy of the deed of gift is prepared, which will be kept in the files of the notary’s office. The contract form can be filled out on a computer or by hand.
Corrections, strikethroughs and other edits are not allowed.
Law (art.
If the donor is a foreign citizen or such a person does not have the opportunity (time) to come for the transaction, an authorized person does this for him with a special permit (power of attorney signed and certified by a notary).
How to issue a deed of gift for a car without ownership?
On the part of the donor without ownership rights, only a trusted citizen can participate in the transaction. A notarized power of attorney is issued for this purpose. In other cases, a donor without ownership rights cannot sign a deed of gift.
Is it possible to give a gift if the car was purchased on credit?
Actions with a credit car are limited by the rights of use and ownership.
I think the second option will be more interesting.
Good luck on the roads!
In your case, it makes sense to sell the car from your common-law husband to your wife at a price close to the market value (this will come in handy in the future if you decide to sell the car).
Good luck on the roads!
Good afternoon My father wants to re-register the car in my name. Could you tell me which way is best to transfer the car (under a sales contract or donation)?
If you plan to sell the car in the future (in the next three years), then it is better to use a purchase and sale transaction at the market price now. This will subsequently reduce the amount of tax.
Good luck on the roads!
Hello. I want to give my car to my son, but he doesn’t have a license yet, does he need to take out insurance when registering with the traffic police and can I drive a car with the old insurance
Good afternoon Please tell me.
The question is how to do it right? Give your husband a car as a gift at the border in Russia and deregister it. Then register it in Belarus or go to Belarus and donate it there, remove it and register it? Which option is cheaper and without hassle? Thank you in advance.
16 July 2017 17:20
I can’t say which option will be more profitable, because... I am not familiar with the legislation of Belarus.
Registration for a husband in Russia will cost 850 rubles, issuing transit numbers will cost 1,600 rubles. Since you are close relatives, you will not have to pay tax on the transaction.
Good luck on the roads!
24 July 2017 13:18
Hello! I want to issue a deed of gift to my sister for a nine-year-old car. She will come from the Moscow region (another region).
She has no rights. A stranger will do the driving.
For example, when donating a car worth rubles, the tax amount will be rubles.
Gifting a car between distant relatives
In practice, there are situations when you need to transfer a car between people who are actually relatives, but are not included in the list of close relatives.
- mother-in-law (father-in-law) - daughter-in-law;
- mother-in-law (father-in-law) - son-in-law;
- ex-wife - ex-husband;
- common-law wife - common-law husband.
There are several options for completing a transaction with minimal costs:
- Use of a purchase and sale agreement.
- Use of several gift agreements through intermediate close relatives.
For example, let’s say you need to give a car from your mother-in-law to your son-in-law.